Square Enix 2007 Annual Report Download - page 45

Download and view the complete annual report

Please find page 45 of the 2007 Square Enix annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 56

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56

43
Tax Effect Accounting
• FY2005 (April 1, 2005 to March 31, 2006)
1. Significant components of deferred tax assets and liabilities
are summarized as follows:
Deferred tax assets
1) Current assets
Enterprise tax payable ¥37
Business office tax payable 20
Accrued bonuses, allowance for bonuses
to employees 708
Advances paid 128
Accrued expenses 180
Allowance for sales returns 358
Non-deductible portion of allowance for
doubtful accounts 169
Non-deductible portion of allowance for content
production account (194)
Valuation loss on content production account 835
Loss carried forward 4,665
Non-deductible valuation gain on allowance
for retirement benefits 1,060
Non-deductible amortization of goodwill 191
Other (285)
Total 7,877
2) Non-current assets
Non-deductible portion of allowance for
retirement benefits 433
Allowance for directors’ retirement benefits 34
Non-deductible depreciation expense of property
and equipment 1,191
Loss on investments in securities 339
Non-deductible portion of allowance for
doubtful accounts 38
Loss carried forward 12,201
Other 198
Valuation allowance (7,206)
Offset to deferred tax assets (non-current assets) (707)
Total 6,523
Net deferred tax assets 14,401
Deferred tax liabilities
Non-current liabilities
Net unrealized gains on other investment securities (364)
Other (342)
Offset to deferred tax assets (non-current assets) 707
Total deferred tax liabilities —
Balance: Net deferred tax assets (liabilities) ¥14,401
2. A reconciliation of the statutory tax rate and the effective
tax rate is as follows:
Statutory tax rate 40.70%
Permanent differences excluded from
non-taxable expenses 0.72
Permanent differences excluded from
gross revenue (209.88)
Taxation on per capita basis for inhabitants’ taxes 1.05
Special income tax credits (10.14)
Amortization of and impairment loss on goodwill 22.73
Valuation allowance 78.80
Reclaimed payment 2.94
Tax effect resulting from reorganization of subsidiaries (9.50)
Loss carried forward (6.35)
Other (1.35)
Effective tax rate (90.28)%
2) Price information
Yen
2001 2002 2004 2005 2005
Stock options Stock options Stock options Stock options Stock options
Exercise price ¥3,430 ¥2,152 ¥2,981 ¥3,365 ¥3,360
Average share price ─¥3,059 ───
at exercise
Fair market value ── ───
on grant date
2. Estimate of fair value of stock options
Not applicable
3. Method of estimating vested interests in stock options
Not applicable
15-52_07ｽｸｴﾆ欧文 07.8.31 14:29 ページ43